Collin wants to expand his lawn-care business and wants to evaluate the profitability of a potential new market. The area he is looking at has 400 homes and Collin estimates that 10 percent of them would be likely to use his service. He charges $25 per lawn and on average customers want their lawns taken care of 20 times a year. Collin estimates the variable costs to expand his business will be $5 per service call and his fixed costs are $2,000. How much profit would Collin make on this new segment?

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The Answer of Collin wants to expand his lawn-care business and wants to evaluate the profitability of a potential new market. The area he is looking at has 400 homes and Collin estimates that 10 percent of them would be likely to use his service. He charges $25 per lawn and on average customers want their lawns taken care of 20 times a year. Collin estimates the variable costs to expand his business will be $5 per service call and his fixed costs are $2,000. How much profit would Collin make on this new segment?

Collin Wants to Expand His Lawn-Care Business and Wants to Evaluate